Wilton Sells Softball Equipment

question 151

Multiple Choice

Wilton sells softball equipment.On November 14, they shipped $4,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30.On November 21, they received an order from Douglas High School for $2,400 worth of custom printed bats to be produced in December.On November 30, Paola Middle School returned $400 of defective merchandise.Wilton has received no payments from either school as of month end.What amount will be recognized as accounts receivable, net on the balance sheet as of November 30?

• A)$6,400
• B)$6,000
• C)$4,000
• D)$3,600

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Definitions:

Specified Means

A clearly defined method or procedure outlined for achieving a given end or goal.

Mailbox Rule

A legal principle that considers a contract offer accepted once the acceptance letter is dispatched, not when it is received by the offeror.

Effective Revocation

The successful cancellation or withdrawal of a legal right, offer, or agreement, communicated in a manner recognized by law.

Option Contract

A contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.